What was the total depreciation and amortization expense for Best Western in 2022, in thousands of dollars?
Best_Western Franchise · 2025 FDDAnswer from 2025 FDD Document
| (in thousands) | 2023 | 2022 |
|---|---|---|
| REVENUES: | ||
| Fees, dues and assessments | $ 293,536 | $ 276,766 |
| Program revenues | 180,273 | 165,915 |
| Other revenues | 62,787 | 51,199 |
| TOTAL REVENUES | 536,596 | 493,880 |
| EXPENSES: | ||
| Compensation, taxes and benefits | 197,303 | 175,005 |
| Advertising and promotion | 121,415 | 105,950 |
| Depreciation and amortization | 18,162 | 14,748 |
| General and administrative | 88,222 | 77,477 |
| Program cost of sales | 19,540 | 16,531 |
| TOTAL EXPENSES | 444,642 | 389,711 |
| Net realized and unrealized gains (losses) on investments | 12,414 | (1,391) |
| Interest and dividend income, and interest expense, net | 12,150 | 2,160 |
| Excess of revenues over expenses before income taxes | 116,518 | 104,938 |
| Income tax provision | (27,498) | (17,169) |
| Excess of revenues over expenses | 89,020 | 87,769 |
| Excess of expenses over revenues | ||
| attributable to non-controlling interests | 299 | 310 |
| EXCESS OF REVENUES OVER EXPENSES | ||
| ATTRIBUTABLE TO BEST WESTERN INTERNATIONAL, INC. | $ 89,319 | $ 88,079 |
Source: Item 23 — Receipts (FDD pages 108–413)
What This Means (2025 FDD)
According to Best Western's 2025 Franchise Disclosure Document, the total depreciation and amortization expense for the year 2022 was $14,748,000. This figure represents the accounting expense recognized for the reduction in value of Best Western's assets, such as property, equipment, and intangible assets, over their useful lives. Depreciation applies to tangible assets, while amortization applies to intangible assets.
For a prospective Best Western franchisee, understanding depreciation and amortization is crucial because it reflects the wear and tear or obsolescence of assets used in the business. While franchisees do not directly pay for Best Western's depreciation and amortization, these expenses are part of the overall financial health assessment of the franchisor. A significant increase in these expenses could indicate substantial investments in new assets or a change in accounting practices, which could indirectly affect the franchise system.
It's important to note that this figure is part of Best Western's overall expenses, which totaled $389,711,000 in 2022. The depreciation and amortization expense contributes to the determination of Best Western's excess of revenues over expenses, which was $87,769,000 for the same year. Franchisees should consider these figures in the context of the franchisor's overall financial performance and stability.